It's Your Supplier, Make it "LARGS"
Supplier Selection Using "LARGS" - Lean, Agile, Resilient, Green, and Sustainable.
Any organization's supply chain sustainability now depends critically on knowing the extent of the social, environmental, and economic impact and viability that its suppliers have. It has been observed that buying managers take into account traditional supplier selection criteria. Sustainable supplier selection from a resilience and sustainability point of view has become vital in Today’s business scenarios.
To remain competitive, companies must consider “LARGS” (Lean, Agile, Resilient, Green, Sustainable) as supply chain attributes for supplier selection to attain long-term corporate success.
- LEAN: Lean supply chain management is the application of lean management principles to the optimisation of inter-organizational processes that are directly connected by the upstream and downstream flow of goods, information, and finance in order to reduce cost and waste (i.e., non-value adding activities). Organizations in a lean supply chain can add more value for customers by reacting to client requests more effectively, rapidly, and predictably.
- AGILE: In the agile supply chain, flexibility and fast reconfigurability are the primary focus. It depends on delivery speed, quality improvement, customer satisfaction, cost minimization and service level improvements.
- RESILIENT: Resilient supply chains are those that are capable of coping with unanticipated disturbances. Resilient suppliers are suppliers who can deliver high-quality products at competitive prices and flexible enough to accommodate demand changes with shorter lead times across a lower threshold of risk without compromising safety and environmental practices.
- GREEN: It includes programmes to improve environmental performance, cut costs and waste in internal supply chains, outbound logistics, and reverse logistics, all with the goal of reducing or eliminating negative environmental effects. It focuses on various R’s of the supply chain, including recycle, remanufacture, reduce, reverse logistics, refurbish etc.
- SUSTAINABLE: It is described as the systematic coordination of crucial interorganizational business processes for enhancing the long-term economic performance of the individual and its supply chain. It involves the strategic, transparent integration and achievement of an organization's social, environmental, and economic goals.

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